MANILA,
Philippines - Condominium builder SM Development Corp. (SMDC) will spend P71
billion to complete existing projects and enter new property ventures in the
next three years, top company officials said yesterday.

“In the next
three years, SMDC will spend P71 billion to drive its expansion activities,”
said newly-appointed SMDC president and chief operating officer Jeffrey Lim.

The
residential arm of the country’s richest man Henry Sy has a considerable
landbank in Metro Manila good for the next five years, he said.

“For the year
2013, SMDC will spend approximately P20 billion in capital expenditures – P13
billion for project development and P7 billion for landbanking,” Lim said.

It will be
followed by P26 billion and P25 billion spending in 2014 and 2015,
respectively.

“For 2013, we
plan to launch four new projects and expand three existing developments in
Metro Manila,” said SMDC vice-chairman and CEO Henry Sy Jr.

Sy said SMDC
will continue to focus largely in Metro Manila in the medium term given robust
demand in the area.

The property
developer will launch 13,000 units this year, almost double the 7,000 units in
2012.

In the first
quarter, SMDC’s consolidated net income jumped 12 percent to P1.4 billion due
to “improved gross profit margin and increased economies of scale.”

Real estate
revenues rose four percent to P5.9 billion.

Lim said of
its 173 hectares landbank, 69 hectares are located in Metro Manila, with the
remaining in Davao and Cebu.

Sy said the
substantial landbank is enough to support more developments in the next five
years.

“We are
really looking at those areas [Davao and Cebu] but at this moment, we would
rather concentrate in Metro Manila – the Mall of Asia area, Makati and
Greenhills – where demand is the biggest at the same time the margin is very
reasonable,” Sy said.

Sy said SMDC
is still studying the market in China, which can be tapped given the successful
business model of the condominium builder.

SMDC’s board
of directors also declared yesterday a cash dividend of 5.3 centavos per share
for stockholders as of May 24. This is payable on June 20.

As of
end-2012, SMDC had 15 ongoing residential condominium projects all over Metro
Manila, with the exception of Wind Residences in Tagaytay.